California’s clean air vehicle incentives ending starting October: Here’s what it means for drivers and the EV market

SAN FRANCISCO (KGO) — The sun will soon set on a couple of key incentives that got more people driving electric vehicles.

Those incentives can save you thousands of dollars — whether you buy new or used — or time spent in traffic commuting.

“It will probably slow it down a bit, but I anticipate there will still be a good percent of sales is what I expect,” said Scott Moura, UC Berkeley professor of Civil and Environmental Engineering.

The end of September marks the end of the $7,500 tax credit on EV purchases.

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“The EV tax credit that we’re looking at going to expire has been heavily utilized. If you look at it from an adoption point of view, utilizing leasing and using that work-around, is key,” said Ivan Drury, director of Insights with Edmunds.com.

In July, EV sales jumped after Trump’s budget bill passed, eliminating the tax credit.

Chevrolet’s EVs surged 100%. Volkswagen saw gains of 127%. Sales of Porsche’s fully electric models jumped 174% and Audi EV sales were up 252%.

August EV sales were up overall too, and September is also looking like a solid month.

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“It’s basically pulling demand forward, because everyone’s taking advantage,” Moura said.

EV drivers have also been taking advantage of access to the HOV lane, another incentive set to expire.

Starting Oct. 1, drivers with “Clean Air Vehicle” tags will no longer be able to drive solo in the HOV lane – although CHP is giving a 60-day grace period before starting to ticket.

“I think it’s a huge bonus to sitting 30 minutes in traffic, even 35 or 40 minutes, depending on which freeway, so I think it’s going to have a big impact,” said commuter Zachary McKellips.

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McKellips occasionally drives an EV for work and has considered buying one himself.

“It certainly draws my attention away from buying one. I considered at one point in time, but if I’m not getting a kick back, and I can’t go in the HOV lane, I really don’t want one,” McKellips said.

Experts say if there’s a silver lining to these incentives being taken away, it’s that policy makers and companies are going to have to get more creative.

“I would tell everybody to stay tuned, because there are other policies and regulations and incentives that are going to pop up,” Moura said.